Business & Finance Corporations

Who Really Reads Your Business Plan?

If you're looking for bank financing, and are fortunate enough to have a banker with some knowledge about your business, she may read the Executive Summary.
Maybe, just maybe, she'll read more.
If you are looking to raise money through Angel Investors or Venture Capitalists, without a personal introduction they'll not even take a look.
Investors get dozens, even hundreds of business plans in the mail every month, and maybe really look at one.
And then (you guessed it) it's likely to be only the first few paragraphs of the Executive Summary.
Investors are interested in only three things: 1.
Who knows you that they trust? (That's why the introduction.
) 2.
Who is on your team and what is their track record? 3.
Have you made sales, validating your business concept? Once you've passed these three hurdles with potential investors, the Plan will get a serious reading.
If you can't pass, your Plan is of no interest to them.
What about professional advisors? Well, the bigger your venture, the more you need to document the research that justifies the effort and how you will exploit opportunities.
Your accountant will be interested in the financial projections.
Your attorney may want to see the growth potential to help you choose the right form of ownership and/or exit strategy.
A serious marketing partner will want to know the budget allocation for advertising and promotion.
Not yet ready for investors or professional advisors? The most important person to read the plan is YOU.
Your plan may be only a couple pages long, but the thinking that goes into preparing it - and particularly, the Marketing Plan component - shows that you have given more than casual thought to your business venture.
And that gets us to the metaphysics.
What role does thinking, mental rehearsing - and focused visualization - play in driving success? There is no definitive answer on this, but many agree that thinking drives neuron movement which is an electrical event and committing that thought energy to paper brings those ideas closer to physical reality.
Of course, any plan, no matter how detailed, is subject to change.
From the minute you enter the fray you have to be ready to adapt or even go to "Plan B.
" But, if you've done your homework you have covered the alternatives and can modify your course accordingly and without trauma.
So, in the final analysis, who is the plan really for? Who will read it? You will read it and you will be confident that you have covered all the bases.
And that is all that really counts.

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